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counting their losses, swiss banking giant ubs says a rogue trader cost them more than $2 billion in authorized -- in unauthorized trades. down but the dollar -- one part of massachusetts is counting on its own currency to keep an economic crisis that day. -- at bay. welcome to our viewers on pbs in america and around the globe. with a united show of support in libya today, british prime investor david cameron and french president nicolas sarkozy became the first western leaders to visit surely sensed the fall of gaddafi's regime. the two countries were at the forefront of international military effort, and today the sources of libya's new leadership say they have breached the lines of defense in
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one of cut back a bank's strongholds. -- last strongholds. >> it is not quite a mission accomplished, but the french and british leaders are arrived here. >> a very good day for us. we are very proud to be here. >> britain played a role which i am very proud of but in the end of this is what the libyans did themselves and that was to congratulate them and work out how we can help next as we rebuild their country. >> a country still at war with colonel gaddafi -- let out nato air support, they know the result -- revolution
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will be squandered. some of the injured will now come to british hospitals, part of a much better planned. on the street -- streets of tripoli -- >> it is not from england and france, we need all the world to help us. >> helping from the beginning, and i hope they will continue helping us until we get back to normal. >> it is 7 years now since tony blair first came here to try to bring colonel gaddafi -- today david cameron is visiting what looks like a completely different country. still serious fighting and plenty of political instability. but in many ways, this is a country that is stabilizing
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every day. >> what i have seen is impressive. people who want to take the lead to sort out their country. it is very important we help them rather than try and lectured them. >> now trying to fill the political vacuum. there were strong hints that britain and france might be rewarded by oil contracts by a grateful nation. mr. sarkozy insisted there was no hidden agenda. david cameron stressed that libya's war is not over. >> this work isn't finished yet. there are still parts of libya under gaddafi's control and the message i think to gaddafi and all those still holding arms on his behalf is it is over, give up. the mercenaries should go home. >> no sign of that, though. fighting today intensified around gaddafi's home town.
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it could still destabilize libya. and yet in benghazi this afternoon -- [inaudible] >> colonel gaddafi said he would hunt you down like rats but he showed the courage of lions and we salute your car repaired -- your courage. >> i triumphant -- bbc news, tripoli. >> the issues of today's visit was up among the topics discussed with u.s. ambassador to the united nations susan rice when she sat down in new york. >> today prime minister david cameron and president sarkozy of france are in that libya. is there going to be a high- level visit by an american soon? >> i can't announce anything
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here, but we have obviously the we have a great interest and a stake in seeing the new leadership in a libya successfully open up their governments and bring in as many libyans as possible. so, we are looking very much forward to seeing a libyan transition that is credible, inclusive, and in which we play a major role. >> you can see that interview with susan rise and fall tomorrow night. but joining me in the studio, more on the international commitment to libya's future is former u.s. state department spokesman pj crowley. ambassador rises said she cannot announce editing but you saw at the podium there was prime minister david cameron and sarkozy -- where were the americans? >> the americans were there yesterday and are on the grand today. the assistant secretary handle and the policy for the region was there yesterday and had the same set of meetings with the
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libyan leadership as the president and prime minister. obviously the president and prime minister tromps assistant secretary, but it is perfectly appropriate. these european countries have had much closer relationship. they carry the weight on the nato operation, with support from the united states. so, going for europe will be there but the united states as well. >> what do you think america's role will be in the post- gaddafi lydia? >> i think as the prime minister said, the job is not done yet. the good news is that much of the infrastructure of libya has not been destroyed. obviously some work needs to be done to bring oil back online and to market. this is where the great danger of gaddafi remains. he is not able to overturn what happens but he can certainly continue to destroy what they want to build up. but olivia is going to need
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great expertise. the most important thing will be institutions of government. the government of 42 years is gone and there is no bench. >> does the u.s. want to get dragged into that kind of nation building? >> it is an institution building. not putting votes on the ground. building institutions that can carry them past the elections and a functioning government. >> it is going to involve u.s. dollars. >> it will involve libyan dollars, european dollars, and direct support from the u.s. as well. >> and the u.s. look at that at the moment with domestic worries? >> this is the expert tays de expertise the united states and europe has to bring to libya, which has a desire for democracy. >> at the same time it has been reported fighting around gaddafi's stronghold, last remaining stronghold. he is still at large. >> and this is critical. critical both to end the conflict. critical for the legitimacy of
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the emerging tnc. they have got to find gaddafi and they have got to find his son, and they said we will not set up a full government in tripoli until they are captured. >> as important as finding saddam hussein or osama bin laden? >> absolutely. >> thank you for joining us. in other news, activists have, with a list of members of the national council aimed at organizing and giving a public face to protest against their president. the activists have been meeting in istanbul in turkey. more than half of the members were in syria. the names have not been revealed it to protect their security. it is now six months since the protests began. the u.n. secretary general ban ki-moon urged world leaders to make faster progress and a two- state solution and the middle east. he was addressing the media and head of the annual united nations general assembly where the palestinian authority plans to seek u.n. recognition of a
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state in the west bank, gaza strip, and east jerusalem. at least 1 people have and killed in a bomb attack in northwest pakistan. a police say a device went off a bank during a funeral for a local tribal elder in a village. of the villagers were pro- government and formed an anti- taliban militia. now for the global economy. five of the world's leading central banks, including the u.s. federal reserve and bank of england, are taking coordinated action to try to help bolster the financial system. they will provide commercial banks with new loans to help ease funding pressures. it comes out as the head of the international monetary fund says the world is in a dangerous new phase which needed bold leadership, and she accused politicians of being indecisive. more details on what today's actions will mean. >> on a day of gloomy forecasts, a concerted move by the world's
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most powerful central banks. short-term loans are going to be made available to commercial banks. there had been growing concerns that banks were stopping lending to each other because of fears they might face losses in the eurozone. in greece, there were more protests against the austerity demanded by your's gang leaders -- europe's leaders. this on a day the eurozone was told growth was expected to come to a virtual standstill by the end of the year. there was a warning that a combination of weak growth and high debt was leading to a dangerous erosion of confidence. >> the it is gaining momentum and frankly it has been aggravated by policy concerns and political lack of resolve. >> greece remains at the heart of the crisis. so far a bailout and austerity measures have not heard.
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greece's debt has soared to 350 billion euros, and the economy is expected to shrink by 5% this year. the country needs a further 8 billion euros by mid october to survive. with no growth, it is hard to see how the country can avoid defaulting sooner or later. italy is the other big concern. this was central wrong yesterday after austerity measures were adopted there. the problem of italy is the debts are so big it can't be rescued. this weekend at the americans will suggest to the europeans they borrow against their mean a bailout fund to give them greater resources it italy needs help. >> we are having plenty of noise and reassurance from politicians, but i think the feeling is there is just not enough action. there are not enough plans put in place. >> in greece today they were cleaning up their vandalized central bank but elsewhere in the world central bank's signal they were prepared to work
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together to help struggling banks, and the markets it judged that as a positive step. bbc news. >> for more on this move by the central banks and the increasing warning signals being sent out by financial leaders, i am joined and the studio by sudeep from "the wall street journal." making borrowing easier for european banks, what are they doing it now and is it significant? >> it is significant because europe is an early stage of what could be considered a bank bill down and they want to prevent it from getting beyond an early stage. this is what is called a liquidity crisis. european banks operate in a global economy, they need dollars to lend not only to u.s. companies but others that operate in dollars, so they have been running short of dollars because u.s. lenders in the titular have been seeing this developing banking crisis in europe and they have pulled back and they do not want to be affected by all that. so, everyone is showing extreme
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caution is and this is what leads to a banking crisis, when people start fearing the worst and start to pull back entirely, it is what leads to more severe developments. >> on a day three years ago when lehman brothers collapsed, it is starting to feel a little like that. >> it really does feel like the beginning stages. it is obviously what they are trying to prevent this time. five central banks working together. it took a couple weeks after the lehman brothers disaster in 2000 a to z six central banks coming together to work on at least cutting interest rates. the problem is they don't really have the quality of tool they have in 2008. they used a lot of their ammunition. interest rates are already low. there is only summits they can do but they are waiting for political authority to step in. at least they can do this -- which is really putting a band- aid on a gaping wound -- at least it is a start. >> central banks are known as the lenders of last resort is this the last resort or ay's and timely move.
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>> at least something for the immediate problem. if you don't deal with that, you certainly falloff of the cliff right now. they are trying to provide a bridge to the political authorities. as you can see, all 17 of the eurozone governments are taking their time passing a broader rescue plan, bailout. they are facing a lot of pressure not only from the u.s. but others in europe and people in asia on. china, of course, as a great interest and themselves in the problem and they're not moving quickly enough. it is understanding given the politics. it will be the same in any country that has political problems like this. but until they move forward and pass something larger, more decisive, and show force that lark -- that lawmakers will deal with this, it will get worse. >> how will it impact the central problem, the potential for greece to be bought -- default. >> the leadership says they
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still want to make sure greece can live to fight another day. mostly they are kicking the can down the road to deal with that later in better economic times. obviously, they have been doing this in the past 18 months so it is not clear whether the strategy is going to work. >> sliding into another recession? >> certainly getting very close. not quite there on a global scale. >> thank you very much for joining us. if that the not the press you enough, you can read a lot more on the fears about the eurozone debt crisis on our website. find comprehensive analysis from the economics editor about what a greek default might look like, a timeline, and how the do you project is under threat. all their act still to come on tonight's program -- if all of the world's economic woes have the down, create your own currency.
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some towns in massachusetts have done just that. rescue teams in south wales are trying to reach four miners trapped underground. efforts to be made to pump water. harold griffith reports. >> a team of 50 are now desperately trying to pump water out of the mine and lead to the men inside. the emergency response started just after 9:00 this morning. initial indications there were five persons trapped. the current situation is that one person has managed to escape and currently four males are still trapped underneath the ground. >> this is one of just a handful of mines left in south wales. it is feared the men are trapped 300 feet by flood water
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from a burst reservoir. >> there are numerous little tunnels, etc., which all potentially have air pockets. so, they are experienced miners, they know the layout and they know where to go in this sort of situation. >> families and friends i gathered at the nearby village hall. they can only wait for news. this is a community familiar with the risks of heavy industry. but this is the first mining accident in the valley for 20 years. >> the families, many of them are in tears. they are obviously deeply traumatized. because this is an experience you can only imagine what they must be going through. these valleys have had a long generation of history of mining and also of serious incidents, unfortunately. >> firefighters, paramedics, and rescue teams are working side by
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side, all driven by the hope they will find the men alive. >> if of the world banking industry needed more bad news, today this was a financial giant ubs says it may have lost around $2 billion because of unauthorized transactions by one of its traders. the man has been arrested in london on suspicion of fraud and ubs said as a result it may report and overall loss for the third quarter. our business editor reports. >> kweku adoboli, a new entrant and the banker hall of fame, or the hall of shame. london based trader at the giant you be as is alleged to have racked up on authorize losses of 1.3 billion pounds. after ubs uncovered the loss, he was arrested. and at 1:00 a.m. this morning this city of london police were contract by ubs over an
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allegation of fraud by one of its employees. detectives arrested a 31-year- old man on suspicion of fraud and abuse of position. sprawling offices in london is where the elected wrote a trader worked. his colossal office -- losses, likely to tip the giant bank into a loss for the three-month period. but it is not the money, but the embarrassment likely to approve most painful because this is a bank after the great crash in 2008 claims it was taking much, much less risk. ubs was among the banks were spurred by the crisis, losses of more than 35 billion pounds. they'll out of the swiss government, it changed management and the way it does business. what went wrong? >> you can put in these technological systems that limit how much people can trade, but in the end, the problem is, if you are implying intelligent
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people and they want to get out around the systems, there is a chance they will get defined away. what is needed is a moral compass from the top of the organization. >> if it turns out kweku adoboli is a big-time rogue trader how will his lost rank against others? the biggest ever, 4.3 billion pounds, in 2008 by french leader jerome kerviel at societe generale. rather more than the 827 million pound loss of britain's most famous, nick leeson, who destroyed bearings bank. -- barings. the british regulator put pressure on banks to tighten their scrutiny on traders. if this had not worked, what might? >> unless you separate out the wild west casino operation from the world bank and inhabited by ordinary women and were never businesses, we are in real trouble. that is what the banking
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commission proposed and why we need to get on implementing the report. >> this advertisement is how ubs likes to see itself, virtuoso in the world of banking. it has been humiliated by one of its bankers. >> we have heard an awful lot about the woes of big banks like you be as an international marketing in turmoil. it is hard to escape the economic crisis, it seems. but one quiet corner of new england is giving it a shot. at the small community is the unlikely front line in the battle against globalization. this county in western massachusetts created an alternative to the dollar in the years before the financial collapse of 2008. how has their local currency, burke shares fared? ♪ them and nobody knows you
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when you are down ♪ >> it is hard to escape the global economy -- while other parts of the country reeled from events they cannot control, many people here feel cushions by the region's local currency. them at one time it was almost a little bit of a joke when it first came out but you had in this worldwide crisis going on -- someone saved us. >> what you were able to do is make a statement we want to survive, do what we have to do to keep the money in the area and keep everybody afloat. >> she says the shares cannot protect her from a global meltdown but they strengthen the home front. >> the shares are for me an indication that i support our small, local businesses. that my dollars will be spent
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with in the county. >> more than 400 businesses and the county except their shares. roughly 3 million have been issued and 130,000 remain in circulation. some traders here say they are a real alternative to globalization. >> and ms. crow is not sustainable. economically, and environmentally. psychologically. the idea is to highlight that we can buck the system by having our own a local currency, we can, with some effort, trade everything we need locally. >> home grown food and products at the co-op emphasizes the drive to keep things local. hear, the shares are often used instead of dollars. the ultimate goal is to be coupled with from the dollar and take it to a local commodity, so the cost of producing a half gallons of maple syrup, for
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instance, would determine the value of the shares. but that is a long way off. also along with all that is finding a way to make the shares viable for bigger businesses like this family-run excavation company. a few customers are able or willing to exchange large amounts of cash for the shares, and the firm's suppliers cannot take them, either. >> i find myself looking for places to spend them on things we needed. with our bills being so high, people don't have that amount of cash around anyway. so, we did not end up getting a lot of payments. >> the whole point of the shares is to keep money circulating within the community. but that is the weakness, too. anything bought from outside must be purchased in dollars. most of these bicycles, for instance, are made in china and the chinese don't take the shares, at least not yet. bbc news, massachusetts.
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then i do like the idea at 2 -- i do like that idea of linking a currency to server. you think it constant updates by visiting our facebook page. thank you for watching and we will see you back here tomorrow. then of course we will bring you the entire interview with the u.s. ambassador to the united nations, susan rice. see you then. >> make sense of international news at >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank.
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>> union bank offers unique insight and expertise in a range of industries. what can we do for you? >> "bbc world news america" was presented by kcet, los angeles.
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BBC World News America
PBS September 15, 2011 4:00pm-4:30pm PDT

News/Business. U.S.-targeted nightly newscast. New.

TOPIC FREQUENCY Libya 10, George 9, Gaddafi 9, Ubs 7, Pbs 4, London 4, David Cameron 4, Bbc News 3, Tripoli 3, France 3, Britain 3, England 3, Sarkozy 2, Nato 2, U.n. 2, Massachusetts 2, Italy 2, South Wales 2, China 2, New York 2
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